Amazon and Flipkart hike seller fees ahead of festive season

Amazon and Flipkart have raised seller fees ahead of the festive season. Amazon introduced a tiered cancellation fee linked to order value: 10% on orders below Rs 10,000, 8% for Rs 10,001, 50,000, 5% for Rs 50,001, 1 lakh, and 2% above Rs 1 lakh. It also increased closing fees by Rs 1 for products up to Rs 500 and Rs 3 for pricier items, citing higher fuel and logistics costs. Flipkart imposed new penalties of Rs 30 to Rs 90 on sellers for failing to meet dispatch deadlines or canceling orders, applicable after three months on the platform.

Some sellers on Amazon forums flagged that cancellations can occur due to factors beyond their control, such as delivery personnel not arriving for pickup. Republic World reports the fee changes come as quick-commerce rivals gain market share and the government considers charging merchants on UPI transactions above Rs 2,000. The revised fees may push prices higher for shoppers during the festive season.